Platform Fees
Dollars & Cents
Pricing Transparency
If you have been in the wealth management industry for any amount of time, you will know that many (most?) firms are not known for their pricing transparency. At Sovereign, we believe in not only highly competitive pricing, but also, absolute transparency and clarity when it come to pricing disclosures. We maintain this credo of transparency with the individual clients of our corporate RIA and we maintain this credo with the advisors who affiliate with us.
In fact, we look at the platform fees and our relationships with our advisors as a "Cooperative". Our goal is is to take advantage of our collective scale to be able to deliver advisor support solutions in the absolutely most cost competitive way to all of our affiliated advisors.
100% Payout
All advisors on our platform receive the same payout: 100%
That's pretty straight forward, and absolutely correct. There are no hidden fees, ticket charges, haircuts, from the BD, Custodian, or the RIA. For example... if you have an account with $1,000,000 and you charge that account 1.5%, you will receive $15,000 - period.
Platform Fees
Our platform fees are as straight forward as they are competitive:
- $500 / month: Covers E&O, Registrations and Base Tech Stack1
- 20 Basis Points for the first $20,000,000 in AUM
- 10 Basis Points for the next $80,000,000 in AUM
- 5 Basis Points for AUM over $100,000,000
1 Base Tech includes: Orion, Salesforce, Office 365, RingCentral, AdvicePay, Global Relay. eMoney & Riskalyze are offered as an optional add-on at $100 / month – a deep discount to the actual cost. There may be a de minimis per account charge for low balance accounts. These charges are determined in advance on a case by case basis.
=================================================================
We also have systems in place that allow our advisors to easily and efficiently charge a fee (flat, subscription, AUM, etc.) for financial planning, advising on held-away assets and other "consultative" engagements. The payout for these fees are at 90% (less a review fee of $18 / quarter / household for ongoing engagements or $75 per engagement).
=================================================================
What's included in the platform fees?
In short, these platform fees cover 100% of what you will need to run your business -- focus on the aspects of your business that you love and leave the rest to us:
- Back office infrastructure
- Fee billing
- Compliance
- E&O insurance
- Immediate access to either of our preferred custodians: Raymond James and/or Charles Schwab
- IT:
- CRM
- Portfolio Management & Accounting
- Fully Customizable Performance Reports
- Risk management
- Financial Planning
- Phone system (including all long distance)
- Marketing
- Access to all of our corporate RIA's client / prospective client events -- both virtual & in-person events.
- Website presence.
- Potential to participate in our various affinity marketing programs.
- Ability to leverage our PEP (Pooled Employer Plan) 401k program. This will give you an easy and no hassle way to market 401k plans. You maintain the relationship, we do all the work.
- Support from advisors who have all made the type of transition you're considering today.